The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1887-06-23

in some way limited by them. should act
upon it's Judgment of limiting crcum-
stances and conditions. The commission,
therefore, will not undertake to decide in .
advance what constitutes or what does
not constitute discrimination under sub.
stantially oinilar circumstances and con-
ditiona," but will leave the railroad COM
panies in fixing their tariffs to act upon
their own judgment and at their risk, sub
jecC to accountability before the commits.
sion and the courts in cases where CON-
plant is made by interested parties of
violation OF the law.
TO GUIDE THE RAILROADS.
For the guidance, however, OF railroad
companies the commission has considered
at great length nearly all questions raised
under tho fourth section OF the law, and
has reached conclusions which ore sum.
married. rs follows:
ton against greater charge for shorter
than for a longer distance over the sumo
line in the same direction, tho shorter be.
ing included within the longer distance, as
qualified therein, is limited to cases in
which circumstances and conditions are
substantially similar.
Second-The phrase ''under substantially
similar circumstances and conditions" in
the fourth section, is used in the same
sense as in the second section; and under
the qualified form OF prohibition in the
fourth section, carriers are required to
Judge in the first instance with regard to
similarity or dissimilarity of circumstances
and conditions that forbid or permit
greater charge for a shorter distance.
Third-The judgment OF carriers in re-
spect to circumstances and conditions il
not finai but subject to the authority of
the commission and courts 10 decide
whether an error has been committed or
whether the statute has been violated:
and in case OF a complaint for violation OF
the fourth section OF the act, the burden of
proof is on the carrier to justify any de.
parture from the general rule prescribed
by the statute, by showing circumstances
and conditions, substantially dissimilar.
Fourth-The provisions OF section 1, re-
curing charges to be reasonable and just,
and OF section 2, forbidding unjust dis.
elimination, apply when exceptional
charges are made under section T. as they
do in other cases.
Fifth-The existence OF actual COMPETE
tion which is OF controlling force in respect
stances and conditions emitting
the carrier to charge less
for a longer than for a shorter haul over
the same line in the same direction, the
shorter being included in the longer in the
following cases: ~ When competition is
with carriers by water which are not sub.
iect to the provisions OF the statute. az
When the competition is with foreign or
other railroads which are not subject to
the provisions OF the statute. (3) In rare
and peculiar cases Of competition between
railroads which are subject to the statute
when the strict application OF the general
rule OF the statute would be destructive al
compitition.
Sixth-When a greater charge in the az.
geegate is made for tho transportation OF
passengers or like kind OF property for q
shorter than for longar distance over
the same line in tho same direction, the
shorter not being included in the longer dis
lance, it is not sufficient justifca ton there.
fore that traffic which is subjected to such
greater charge is way or local traffic, and that
which is given more favorable rates is not,
nor is it sufficient justification for such
greater charge that short haul traffic more
expensive to the carrier unless when the
circumstances are such as make it cxcep-
tionally expensive or long haul traffic OK
ceptioEally inexpensive, the difference be-
Ing extraordinary and susceptible ofproof;
nor that a lesser charge on a longer haul,
merely q continuation OF favorable rates
under which trade centers, or individual es-
adjustments have been built up. The
fact that long haul traffic will only bear
certain rates is no reason for carrying it
for less than cost ut the expense of other
traffic.
g.. ~ CONSIDERED IN DETAIL.
Considering the cases governed by the
fifth section in the above abstract the COM
mission takes up the first com petltion wi it'll
earriersxby water, and says:
: ltwas fairly shown before US that in.
stances exist, and many will be found,
along the routes OF the petitioners lines in
Kentucky, Tennessee: Georgia, Alabama,
Mississippi and Louisiana, three Compel
Ing waterways force down railroad rates
below what it is possible to make them at
non-competitive points and still maintain
the roads with success or efficiency. The
only question is whether competition is
kept within proper bounds. Low rates are
necessity OF the situation, and If rail-
roacs compete with water transportation,
either on ocean or navigable rivers; they
have no choice but to accept such rates.
To compel the roads to observe strictly
the general rule laid down by the fourth
ment OF some classes OF business in
which their composition, with wa
ter transportation is now of pnblic
Importance. The railroads must either
be allowed 20 compete with vessel owners,
and make low charges for that purpose, or
they ntust'leave vessel owners in the pos
session OF business without the check upon
sCo COlupcGlUIOu WO4lu
Tho commission is OF the opinion that con-
gress had these circumstances in view in
passing the law. Competition with Cana
dian roads may, it is believed, present n case
OF dissimilar circumstances and condition.
Whenever such roads compete with roads
in the United States for business between
one part OF the country and another, q
state OF circumstances arises as to such
business which justifies American roads
meeting such competition by correspond
ing reduction OF rates, without regard to
the fact that in SO doing the rates between
terminals may be reduced below the rates
to and from intermediate places, which are
otherwise reasonable and just. The
Tact that American roads are
left free to meet such competition is as
surance that no war on rates will be waged
by Canadian roads. The case in which
competition between American roads will
permit deviation from the long and
short haul clause are very lew; but one
such Is that OF the railroad extending from
Pittsbttrg. Pa, parallel to the Pennsyl-
vania road rs far as Youngstown, thence
to Ashtabula, Ohio, where, through con-
nection with the Lake Shore, itgives to the
people OF Pittsburg and youngstown com.
petition with tho Pennsylvania road in
their business to and from New York and
Now England. This route is somewhat
roundabout. but il the long
and short haul clause is construed
strictly would destroy competition from
Pittsburg. Other roads are similarly Sit
uated, like certain north and south roads,
such 40 that from Circinatti to Toledo
and that from New Albany to Chicago,
when forming links in east bound traffic.
They make q smaller charge for q longer
haul because their direction compels it.
The commission reserves freedom to de.
eide without prejudice applications from
these roads.
WHAT WILL BE DONE.
The commissioners say they were unani.